Could Israel lose in 1967 or 1973 and survive? I have my doubts (in 1973, in particular there's a real balloon going up dilemma). Still that's an obvious temptation. The problem is that partition only really works in the context of a broader peace deal (economic cooperation, resource sharing etc.), and the temptation for the Arab world, wherever it is in a situation to dictate terms to Israel, to dictate terms that eliminate Israel, is probably too high (though matters might be prettied up through binationalism fig-leaves and the like).